Bitcoin is trading at $6,746, up 7.6% in the past 24 hours, rising 9% at the start of the second quarter. While the stock market continues to struggle, reeling from the Dow’s historic 23% decline, the S&P 500’s 20% plunge and the Nasdaq’s 14% dip in the first quarter, Bitcoin posted a 10% drop over the first three months of 2020.
While performing notably better than equities, Bitcoin failed to live up to expectations that the leading cryptocurrency is a clear safe haven asset. Instead, the market turbulence due to the pandemic was widespread. Gold, however, maintained a significant edge, up nearly 4% in the first quarter as investors looked for traditional safe-haven assets.
Analysts expect the coronavirus outbreak to inflict a long-lasting blow to the US economy, which is already threatening to post its highest unemployment figures since the Great Depression. Nearly 10 million American workers have filed for first-time unemployment benefits in a two-week span.
Economists at the Federal Reserve Bank of St. Louis project an unemployment rate of 32%, with the loss of 47 million jobs, along with 67 million Americans who are currently at high risk for layoffs, reports CNBC.
In a research report posted last week, St. Louis Fed economist Miguel Faria-e-Castro writes,
“Moreover, one can argue that the expected duration of unemployment matters more than the unemployment rate itself, especially if the recovery is quick (and so duration is short). These are very large numbers by historical standards, but this is a rather unique shock that is unlike any other experienced by the U.S. economy in the last 100 years.”
Governments in uncharted territory have been taking extreme measures to combat Covid-19, restricting movements,